Landis: FDIC likes to slip into banks to avoid panic

Sunday

Dec 27, 2009 at 12:01 AMDec 27, 2009 at 7:33 AM

There are a couple of reasons banks seem to close in the dead of night lately. It gets dark early in December. The FEDERAL DEPOSIT INSURANCE CORP. also wants to make sure the bank can open the next morning or soon thereafter.

Tim Landis

There are a couple of reasons banks seem to close in the dead of night lately. It gets dark early in December. The FEDERAL DEPOSIT INSURANCE CORP. also wants to make sure the bank can open the next morning or soon thereafter.

In other words, business as usual. No need for panic.

Such was the case with the failure a little more than a week ago of the Independent Bankers’ Bank of Springfield, a bank that really isn’t a bank in the sense that consumers can write checks or drop into the lobby to make a deposit.

It was the first bank within the Springfield city limits to fail in a nationwide wave that was at 140 as of this past week. As IBB provided services to 450 other banks — clearing checks, processing loans, securities and the like — it will go largely unnoticed except by client banks and the 65 employees who work there.

But why all these after-hours announcements?

“It’s typical of what they (the FDIC) do. They let us know just a little bit in advance of moving into an institution,” said Bob Wingert, president of the Community Bankers Association of Illinois, based in Springfield.

The IBB announcement came in the form of an FDIC press release on a Friday night, well after the bank had closed. The feds set up a “bridge bank” to keep operations going until a buyer is found, if a buyer is found. The bank was up and running Monday morning.

The FDIC also has been careful to emphasize in each bank-closing announcement, whether it’s Illinois, Georgia, Texas or California, that not a dime of insured deposits has been lost to date. In each case, another institution has taken over in a matter of days.

“It’s pretty impressive how regulators are able to step in and move on with operations,” Wingert said.

Unfortunately, he said, they are likely to get more practice in 2010 as most experts expect additional bank failures, including in Illinois. Fortunately, Wingert said, there are healthy banks to step in.

“They’ve been able to find ways to help these banks survive,” Wingert said.

It has become known as “the building next to Burger King” on Veterans Parkway. ASPEN DENTAL is building an office at 2926 S. Veterans Parkway, according to filings at the City Building and Zoning Department.

Aspen, based in Syracuse, N.Y., has approximately 220 offices in 19 states, according to the company Web site. The company reports it served more than 1.5 million patients in 2008. The Web site is aspendental.com.

There is nothing official yet, but discussions have resumed about a tax increment financing district to assist redevelopment of MacARTHUR BOULEVARD between South Grand and Wabash avenues.

TIF districts are meant to encourage development by providing tax breaks for restoration of neglected buildings. The old Kmart and Esquire theater buildings certainly come to mind. The TIF idea has been floated a few times by the MacArthur Boulevard Business Association and could well become an official request early in 2010.

A few finishing touches remain, but KING TECHNOLOGY INC., a consulting and technology firm, has moved into the former Buck’s Hat building at 3 N. Old Capitol Plaza. The family-owned company, which is nearing its 20th year in business, had operated in a temporary facility while the renovation was completed.

THE GREATER SPRINGFIELD CHAMBER OF COMMERCE is taking nominations for the 2010 Sangamon County Agriculture Hall of Fame. The winner will be announced at the agriculture day breakfast in March.

Nomination forms are available at www.gscc.org or by calling the chamber, 525-1173.

In a slow economy, hotels are trying a variety of marketing techniques to keep the travelers coming.

DRURY HOTELS just announced the addition of free evening food and drinks to its traditional free breakfasts. President and CEO Chuck Drury said in a statement the evening menu would include chicken fingers, baked potatoes, egg rolls, fresh vegetables, salads and hotdogs, as well as a variety of beverages.

The decorative chairs at Spring Street and Lawrence Avenue are down, for good. The city ordered the former home of Periwinkles Gift Store — the store’s signature at one point was decorative chairs suspended on the exterior — demolished as a result of storm damage that left the structure unsafe.

The building most recently was home to Flea Market to Fabulous, which relocated the inventory to a second store on the same lot. The phone number is 544-2322. The Web site is http://www.fleamarket_tofab.com.

The north end will start the New Year without a couple of business names, LEE’S HOME FURNISHINGS, 3230 Atlanta St., just off North Dirksen Parkway, and THE RIVER WILDE gift shop, 3955 N. Dirksen Parkway.

Owners of both say the economy was a factor. Owners of The River Wilde say they are considering opening in another location.
Lee’s opened in 2004, and The River Wilde opened in 1995. The gift shop started as a home-based business before moving to Dirksen Parkway about eight years ago.

HANSON PROFESSIONAL SERVICES INC. of Springfield recently was named No. 16 among the top design firms by Midwest Construction magazine. The ranking was based on $37.3 million in revenue on regional projects, including in Illinois, Missouri, Wisconsin and eastern Indiana.

If you think the health-care debate has been intense, consider this closing line in the December newsletter of the ILLINOIS OIL & GAS ASSOCIATION newsletter on the “consensus” on man-made global warming.

Pointing to warnings that cap-and-trade proposals to limit emissions would drive up energy costs, the newsletter concludes, “Unfortunately, the folks who want to save the future of our planet are apparently more than happy to sacrifice present-day inhabitants.”

Listen to Tim Landis Tuesday afternoons at 4:45 and Wednesday mornings at 8:20 during The WUIS/SJ-R Business Report on WUIS 91.9 FM, 89.3 FM and WUIS.org.

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